Dozens of Ted Baker stores are set to close their doors for the final time this week as doubts grow over a potential licensing partnership with retail tycoon Mike Ashley. Negotiations between Ashley’s Frasers Group and Authentic, the owner of Ted Baker, have reportedly hit a standstill, despite appearing close to a deal just three months ago.
The closure of the remaining 31 Ted Baker stores in the UK is being overseen by administrators for the company’s previous partner, No Ordinary Designer Label (NODL), which went into administration earlier this year. A store source revealed that employees have been informed that Tuesday will mark their last day of trading, putting over 500 jobs at risk.
Frasers Group was allegedly in talks with Authentic for a potential deal that would include both Ted Baker and Reebok. However, sources close to Authentic have stated that there are currently no ongoing discussions between the two parties. Property industry sources have suggested that talks about reopening a small number of Ted Baker stores have taken place in recent weeks.
If a deal had been reached, it would have added Ted Baker to Ashley’s extensive portfolio of retail brands, including Evans Cycles, Gieves & Hawkes, House of Fraser, Jack Wills, and Sports Direct. Next was also rumored to be vying for a deal, while Ted Baker’s previous US licensing partner, OSL, had expressed interest at the start of the process.
The administrator for NODL, Teneo, was forced to close 15 Ted Baker stores earlier this year, resulting in over 200 job losses. Ted Baker was delisted from the London stock market in 2022 after being acquired by Authentic, led by entrepreneur Jamie Salter, for around £210m.
The retailer has faced numerous challenges in recent years, starting with founder Ray Kelvin’s departure in 2019 following allegations of inappropriate behavior towards colleagues. It has since issued multiple profit warnings and faced accounting errors, all while navigating the financial strains of the COVID-19 pandemic. In 2020, the company made the difficult decision to cut hundreds of jobs and raise £100m to stabilize its finances.
Both Authentic and Frasers Group declined to comment on the current state of negotiations.
